Question: Arito, Inc. received an $16,000 30-day, 9% note dated December 21, 2016 from Rimawa Company. On December 31, 2016, Arito made the necessary adjusting entry

Arito, Inc. received an $16,000 30-day, 9% note dated December 21, 2016 from Rimawa Company. On December 31, 2016, Arito made the necessary adjusting entry to accrue interest income on the note. Aritos entry to record payment of the note on January 20, 2017 was: Select one: A. Cash 16,120 Interest income 120 Notes receivable 16,000 B. Cash 16,040 Interest income 40 Notes receivable 16,000 C. Cash 16,120 Interest receivable 40 Interest income 80 Notes receivable 16,000 D. Cash 16,080 Interest income 80 Notes receivable 16,000

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